PayPal layoffs hit Chicago | Crain’s Chicago Business

“PayPal is constantly evaluating how we work to ensure we are prepared to meet our customers’ needs and operate with the best structure and processes to support our strategic business priorities as we continue to grow and evolve,” PayPal said in a statement.

Spending on PayPal’s platforms climbed just 15% in the first quarter to $ 323 billion, the smallest increase in at least five years, when supply chain disruptions hindered e-commerce purchases and more consumers returned to in-store shopping as the pandemic eased. The firm’s former parent company EBay Inc. It has also been rapidly moving payments away from PayPal’s platform.

PayPal’s headcount has climbed in recent years and the firm ended last year with 30,900 employees, a 33% increase from pre-pandemic levels.

The company said last month it was working to improve operating leverage – or to grow revenue faster than spend. Chief executive officer Dan Schulman said the company had begun to simplify its operating model before the pandemic, but the explosion in volumes on its platform forced the outbreak of the early days to put the company on hold.

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“We are now coming back to this work with renewed focus, energy and purpose,” Schulman vowed at that time.

PayPal warned in a regulatory filing that it incurred $ 20 million in costs to tie its restructuring in the first three months of the year after it initiated a “strategic reduction of the existing global workforce.” Most of the costs were linked to severance and other employee benefits, PayPal said.

The company now expects to incur an additional $ 100 million in restructuring charges this year, though job cuts will ultimately help save the firm about $ 260 million a year in employee-related costs, PayPal said.

“We are continuing to review our facility needs due to our new work models,” PayPal said in the filing. “The strategic actions and cash payments associated with this plan are expected to be substantially completed by the fourth quarter of 2022.”

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